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The Personal Accounts Delivery Authority launches its investment discussion paper

PERSONAL ACCOUNTS DELIVERY AUTHORITY News Release (04/2009) issued by COI News Distribution Service on 7 May 2009

Today, the Personal Accounts Delivery Authority (PADA) launched its discussion paper on investment: Building Personal Accounts: Designing an investment approach.

The purpose of this paper is to draw upon good practice and expertise from across the pension and investment industries, and relevant stakeholders, on the most appropriate investment approach for the personal accounts scheme.

Responses will inform PADA's recommendations to the trustee corporation regarding the design of the scheme. The personal accounts scheme will be run by a not-for-profit trustee corporation, solely in members' interests.

One of the key questions considered is how to meet future members' needs at low cost. PADA anticipates that the majority of members (low to moderate earners) will be invested in the default fund so there is particular, although not exclusive, focus on this fund.

The document covers a range of key investment issues including:

* The investment objective and design of the default fund
* The investment approach as members near retirement
* Achievement of high quality corporate governance
* Responsible investment and its role within the scheme
* The number and types of further fund choice that should be made available

All aspects of the investment approach need to be matched to members' characteristics (and their likely attitude to risk) and must be consistent with delivering a low charge, value-for-money scheme.

Chief Executive, Tim Jones, said:

"This discussion paper seeks to draw on the experience and expertise of the investment industry, pension scheme providers, consumer groups, employers, and existing trustees to help PADA design a pension scheme that will provide the best outcomes for future members as well as access to low-cost pension savings."

Investment Director, Mark Fawcett, said:

"This is a great opportunity to have a debate about how to design the best possible investment approach for the personal accounts scheme. We are looking to hear both innovative and proven solutions and crucially how these can be delivered at a low charge."

Interested parties will be able to respond to the document during a period of 13 weeks, from 7 May 2009 until 7 August 2009. All comments will be summarised and published along with a response to the discussion paper. This will occur within three months of the deadline.

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Notes to editors

1. The Personal Accounts Delivery Authority (PADA) is a non-departmental public body specifically established by legislation to introduce the personal accounts scheme.

2. The personal accounts scheme will be a trust-based occupational pension scheme, run by a trustee corporation. It is intended to complement existing workplace pension provision.

3. PADA is a transitory body as the personal accounts scheme will be managed by a trustee corporation.

4. The full paper is available to download from PADA's website: http://www.padeliveryauthority.org.uk/investment.asp

MEDIA ENQUIRIES

For further information please contact:

Stefanie.Ives@dwp.gsi.gov.uk 0207 940 8580

Heather.Tilston@dwp.gsi.gov.uk 0207 940 8582

St Dunstan's House, 201 - 211 Borough High Street, London SE1 1GZ
t 020 7940 8580 f 020 7940 8573 e pada.media@dwp.gsi.gov.uk
http://www.padeliveryauthority.org.uk